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United States. Federal Energy Regulatory Commission

FERC Approves PJM's Reliability Resource Initiative (RRI) Proposal

Strategic Insights

— 2 min read

The Federal Energy Regulatory Commission (FERC) has approved PJM Interconnection, L.L.C.'s (PJM) proposed Reliability Resource Initiative (RRI) revisions to address near-term resource adequacy concerns in the PJM region. The RRI proposal introduces a limited application window for additional projects to be studied in Transition Cycle #2 of PJM's interconnection queue process. FERC has accepted PJM's proposed tariff revisions, effective December 14, 2024, finding that they are just and reasonable and not unduly discriminatory or preferential.

Key Takeaways:

  • FERC approved PJM's RRI proposal to address near-term resource adequacy concerns in the PJM region, introducing a limited application window for additional projects to be studied in Transition Cycle #2.
  • The RRI proposal aims to accelerate the development of new generation capacity by at least 18 months, allowing for significant amounts of unforced capacity (UCAP) to be brought online before 2028.
  • The proposal involves a scoring system to select projects based on market impact and commercial operation date viability, with a focus on projects that can deliver additional capacity quickly to the PJM footprint.
  • FERC rejected arguments that the RRI proposal impermissibly infringes on reserved state authority over resource planning and the generation mix, finding that it implicates areas over which the Commission has jurisdiction (generator interconnection and PJM's Tariff provisions on resource adequacy).
  • The Commission determined that PJM's proposed market impact criteria were just and reasonable and not unduly discriminatory or preferential.
  • FERC accepted objections set forth by protestors, including concerns that the RRI proposal preferenced certain resources, finding that it neither mandates nor prohibits the development of any particular generating facility.
  • The proposed tariff revisions were effective on December 14, 2024.
  • The Commission concluded that the proposal reasonably addressed the possibility of a resource adequacy shortfall and met the independent entity variation standard.
  • PJM projected a 10 GW gap in capacity by the 2030/31 delivery year, which could swell to more than 20 GW based on forecasted load growth.

Statistics:

  • PJM anticipates a 10 GW gap in capacity by the 2030/31 delivery year.
  • The gap could swell to more than 20 GW based on forecasted load growth.
  • PJM expects 2.5 GW of new generation capacity to come online in 2024.
  • The Commission accepted PJM's proposed tariff revisions, effective December 14, 2024.

Sources:

  • "PJM Interconnection, L.L.C.," Document Accession #: 20250728-3060, Filed Date: 07/28/2025.
  • "16 U.S.C. § 824d," Federal Power Act, Section 205.
  • "16 U.S.C. § 824," Federal Power Act, Section 201.
  • "Improvements to Generator Interconnection Procs. & Agreements, Order No. 2023," 184 FERC P 61,054, order on reh'g, 185 FERC P 61,063 (2023), order on reh'g, Order No. 2023-A, 186 FERC P 61,199, errata notice, 188 FERC P 61,134 (2024).
  • "Standardization of Generator Interconnection Agreements & Procs., Order No. 2003," 104 FERC P 61,103, at PP 26, 827 (2003), order on reh'g, Order No. 2003-A, 106 FERC P 61,220, order on reh'g, Order No. 2003-B, 109 FERC P 61,287 (2004), order on reh'g, Order No. 2003-C, 111 FERC P 61,401 (2005).

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